Appraisals in 2024

[KYgirl]

I'm a small business and with all the fees we have to pay this maybe my last year. Three appraisals in a month just doesn't get it for me. Bidenonomics has killed my business! We have so many real estate agents that are packing it in too!

 

[Fernando]

It has been a tough year for appraising. Mortgage rates have been falling slowly. When rates drop even more, more sales and a refi boom will give us more business.
Unfortunately, we don't know when that will happen and in mean time taking losses from our overhead expenses.

 

[Joe Flacco]

It's tough for everyone in real estate. Agents, bankers, title companies, home inspectors, etc.

 

[Tom D]

No one realized what a 3% interest rate would do to sales and refi's.
If your somewhat newer here, yea, this one will be brutal in less future appraisal work. On top of not using appraisers for loans, this is mostly the end for a lot a appraisers.

The fed, fannie, avm have all together just stumped us to the ground.

 

[Tom4value]

I am 61. Too young to retire and too old to try “new tricks”.

I built a good client base when things were good so I have good weeks and bad weeks. Hoping things turn around so I have at least one year of “Covid volume” and then hang the shingle and chase butterflies til the dirt nap.

 

[Ricky LaFleur]

I'm a small business and with all the fees we have to pay this maybe my last year. Three appraisals in a month just doesn't get it for me.

Unfortunately, few jobs have 100% security for their future. Like Bezos said, who knew that one day we would have psychologists for our pets?? Things change.

With that low of volume, consider moving appraisal to "limited part-time" status and pursue some other avenues for the time being. You will be able to pick up and take off if volume returns to a sustainable level for you, unless you've already found a more lucrative/secure opportunity. In that case, leave the hamster wheel behind and roll on. I knew an appraiser who quit for 15+ years but kept their license active and jumped back in some years ago like nothing ever happened. They got to a stage in life and the RE cycle that it worked to be back in the valuation industry. Fortunately for them, they got to miss the '08 crisis as a bonus. I write this as a reminder to myself as well, for those times (sure to come again) where volume reaches despair.

 

[sputnam]

I'm a small business and with all the fees we have to pay this maybe my last year. Three appraisals in a month just doesn't get it for me. Bidenonomics has killed my business! We have so many real estate agents that are packing it in too!

Appraising has always been a tough profession. More or less constantly changing regulation... unpredictable work flows... demanding Clients. Still, it is possible to thrive. One of the most important things any business can do is to cut costs. Cutting costs is more important than increasing revenues. It's important for appraisers to stop measuring their success by how many appraisals they do. It doesn't matter how many you complete. What matters is how much money you bank.

 

[J Grant]

I'm a small business and with all the fees we have to pay this maybe my last year. Three appraisals in a month just doesn't get it for me. Bidenonomics has killed my business! We have so many real estate agents that are packing it in too!

Gee, the first two years of Biden were the busiest ever for appraisals, and I made more than in any other time- did his "bidenomics " do that, too?

It is not his economic policies that are killing the business; it is Fannie and Freddie's decision to use Waivers, which replace a big chunk of appraisal volume. Combine that with the fact that refinances are down because most people refinanced when rates were low, and purchases have stalled due to high mortgage rates, which a president does not control. There will be a rate cut in September which will make us somewhat busier, but IMO, the best years of this business are behind us, due to the move away from using traditional appraisals at the GSE decision level.

 

[DTB]

It's tough for everyone in real estate. Agents, bankers, title companies, home inspectors, etc.

Landlords are doing quite well especially the ones who have been at it a while.

 

[J Grant]

Appraising has always been a tough profession. More or less constantly changing regulation... unpredictable work flows... demanding Clients. Still, it is possible to thrive. One of the most important things any business can do is to cut costs. Cutting costs is more important than increasing revenues. It's important for appraisers to stop measuring their success by how many appraisals they do. It doesn't matter how many you complete. What matters is how much money you bank.

There are no more costs to be cut . Most appraisers work from a home office. They need software, E and O insurance, MLS dues etc.

The costs are not that high relatively speaking, but the reduced income, which is permanent now due to WAIVERS and hybrids, and onerous conditions wrt the increasing time spent addressing ROV , CU, and now the onerous additional information the new forms demand make the profession far less viable on the residential license only side. .